Joe Biden has shelved plans for a pact with Britain that could have paved the way for a full post-Brexit trade deal.
The US president has decided not to move forward with a “foundational” agreement prepared by the US Trade Representative’s Office, that would have included negotiations over 11 areas of trade and regulation, following opposition from his own party in the Senate.
Senate Democrats argued that it would not have provided sufficient protection for American workers, Politico reported.
The UK’s hopes for a free trade agreement (FTA) with the US date from before the Brexit referendum, and faced an early setback when Barack Obama told voters that Britain would be “at the back of the queue” for a deal if it left the EU.
But despite US support for an FTA in the early days of Donald Trump’s presidency in 2016, the chance of a deal has now fallen to “zero” under Mr Biden, the Government believes.
In this context, read “investors in American corporations”.
In deals like this, for the average person it tends to be a matter of “jobs vs prices”. Imports in effect can place a soft cap on domestic prices, while it’s also possible that a significant influx of imported goods could displace the jobs of domestic workers (and I don’t wish to downplay the significance of that burden on those affected), usually this demographic of “lost job due to business drying up thanks to imports and trade deals” is small in comparison to “experienced lower prices due to increased competition”.
I’d even venture a speculation that even in cases where jobs are lost in these situations, it’s probably just as often “corporate leadership preserving margins by reducing workforce and asking more productivity of the remainder” than actual proportional loss of market share.